TNAG-1861-FCO40-2636-Future-of-Hong-Kong-Basic-Law-1989 — Page 42

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Article 110

36

The Hong Kong dollar, as the legal tender in the

Hong Kong SAR, shall continue to circulate.

The authority to issue Hong Kong currency shall be

vested in the Government of the Hong Kong SAR. The system

regarding the issue of Hong Kong currency and the reserve

fund shall be prescribed by law.

The Government of the Hong Kong SAR may authorize

designated banks to issue or continue to issue Hong Kong currency under statutory authority, after satisfying itself that any issue of currency will be soundly based and that

the arrangements for such issue are consist ent with the object of maintaining the stability of the currency.

Article 111

No exchange control policies shall be

be applied in

the Hong Kong SAR. The Hong Kong dollar shall be freely

convertible.

Open

mark ets for foreign exchange, gold,

securities and futures shall continue.

The Government of the Hong Kong SAR shall

safeguard the free flow of all capital within, into and out of the Region.

Article 112

The Exchange Fund of the Hong Kong SAR shall be managed and controlled by the government of the Region, primarily for regulating the exchange value of the Hong

Kong dollar.

Article 113

Unless

The Hong Kong SAR shall remain a free port.

otherwise stipulated by law, no tariff shall

be

imp os ed.

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